This invention relates generally to electronic gaming machines interconnected by a computer network and more particularly to a method and apparatus for crediting winnings to such machines adjusted for tax laws.
IRS regulations require that a player complete a W2-G form declaring certain winnings for tax purposes. Currently, if a player wins a bonus award that exceeds a certain threshold (currently set at $1,200 or more), then that player must fill out the W2-G form prior to being awarded an amount adjusted for taxes. Casinos are required by law to enforce these regulations.
Enforcement on slot machines is typically accomplished by programming the games to automatically lock up on any award of $1,200 or more and require that the jackpot be manually paid. This lockup gives the casino an opportunity to cause the player to complete the W2-G form. The award is not paid until the player signs the form as required. The casino then retrieves the jackpot amount in cash or tokens and pays the customer. A casino representative would then "clear" the machine by turning a reset key on the side of the machine and normal play is continued.
Obtaining cash to pay the customer requires that certain procedures be followed to insure security and propriety. These procedures typically take between about twenty to thirty minutes to complete. Unfortunately the player is forced to wait while this process occurs.
Another drawback to paying players directly involves the fact that such cash awards occur outside of the networked environment. More recently, gaming machines within casinos are networked together to allow networked bonusing and account control. U.S. Pat. No. 5,572,882 to Acres et al. ("the '882 patent"), for instance, discloses a card reader installed at each gaming machine. The '882 patent is assigned to the assignee of the present application and is incorporated herein by reference for all purposes. The card reader disclosed in the '882 patent reads a player identification card issued to customers of the casino and maintains an account balance at a central database within the casino. Thus, a customer could move from machine to machine without having to cash-out and reinsert large amounts of cash into the new machine. By hand-paying the customer, the account information is lost and the player would have to reinsert the cash into the machine.
On machines with denominations of $1 and less, jackpots of $1,200 and above occur rarely. On $5 games the problem is more noticeable. At $25 and especially $100 and above, awards of $1,200 and more are so frequent that customer enjoyment is severely impacted.
Accordingly, a need remains for an improved system for awarding bonuses within casinos that comply with current tax laws.